NAME: SATYAM SECTION B

ENROLLMENT NUMBER: 2019-098 DATE: 21/03/2022

MID SEMESTER EXAMINATION(6th SEMESTER PROPERTY LAW)

Question 1

(a) Which ones of the following are immovable property and why? 2 Marks
(i) Fertilizer plant permanently attached to the factory land;
(ii) Cinema projectors with temporary structures put up by touring
talkies.

(b) G sells his bungalow in Nagpur to P. The consideration paid by P to G 1 Mark

consists of a sum of Rs. 20 Lakhs + P’s flat in Mumbai. Is this
transaction an exchange in spite of the monetary consideration of Rs. 20
Lakhs and why?

(c) Please state the English meaning of the following two: 2 Marks
(i) Jus abutendi
(ii) Jus sibihabendi or jus prohibendi

Answer 1

(a) Fertilizer plant permanently attached to the factory land is an immovable property as
according to Section 3 of the Transfer of property Act,1882, immovable property
includes land, benefits arising out of land, things attached to the earth, or permanently
fastened to anything attached to the earth. The word “attached to earth” has been defined
in Section of the Act itself as attached to what is so imbedded for the permanent
beneficial enjoyment of that to which it is attached. The Fertilizer plant permanently
 attached to the factory land is “attached to earth” and the Cinema projectors with
temporary structures put up by touring talkies due to their temporary and movable nature
are not “attached to earth”.

(b) This is an exchange in spite of the monetary consideration of Rs. 20 Lakhs. Section 118
of the Transfer of Property Act,1882 defines “exchange” and for a valid exchange to be
there,there should be a mutual transfer of ownership and that too when the transfer of
ownership has neither thing or both things being money only. In the present case,there is
an exchange of ownership and transfer of ownership has neither thing or both things
being money only making it an “exchange”.

(c) Jus abutendi- A right to make full use of a property even if it means wasting or
destroying the property.

Jus sibi habendi means the right to hold a thing for oneself or jus prohibendi means right
to exclude others from using the thing.

Question 2

Write a short note on Prohibition of Benami Property Transactions Act (state any five features).

Answer 2

The term Benami in Hindi Translates to ‘no name’ or ‘without name’. Benami transactions or
Benami property would be one where a person’s own name is not used but the name of another
person or a fictitious person is used instead.

The term "Benami property" refers to property that has been bought in the name of someone
other than the person who purchased it. The person who has paid the required money for the
purchase has done so in the name of someone else.The transaction done in order to buy this
“benami property” is called a “Benami Transaction”.

The essentials for a benami transaction are:

a. the transaction is made in a fictitious name,

b. the owner is not aware of or denies knowledge of the ownership of the property, or
c. the person providing the consideration for the property is not traceable.

The various forms of punishment under the Benami Act are as follows:
a. Confiscation of benami property
b. Where a benami transaction has been entered into to defeat the provisions of any law,
avoid payment of statutory dues or avoid payment to creditors, any person who enters or
abets/induces another person to enter into such a transaction would be punishable with:
c. Imprisonment between 1 to 7 years and
d. Fine up to 25% of the fair market value of the property
e. Where a person who is required to provide information under this Act provides false
information, he shall be punishable with:
f. Imprisonment between 6 months to 5 years and
g. Fine up to 10% of the fair market value of the property

Question 4

State the liabilities of a seller to the transaction of sale of immovable property. In all state any
five points.

Answer 4

The liabilities of a seller who is involved in a transaction of sale of immovable property are
statutory which are defined in Section 55 of the Transfer of Property Act,1882. The liabilities of
a seller are:
 1. To disclose all the facts about the property and transaction so as to avoid confusion and
fraud in the future.
2. To submit all the required documents to the buyer and Allowing the buyer to examine
documents relating to the property on request.
3. Execute a proper conveyance in favor of buyer
4. To pay rent or public charges due on the property till the date of the sale.
5. To give possession of the property to the buyer of required time and place.
6. To answer the related queries or questions of buyer
7. To pay rent or public charges due on the property till the date of the sale

Question 5

State the rights and liabilities of a lessee. In all state any five points.

Answer 5

The rights and liabilities of a lessee are statutory and are defined in Section 108 of the Transfer
of Property Act,1882.

The rights of a lesse are:

a. Right to have benefits arising of the land leased- The lessee can enjoy the benefits
coming out of the land leased.
b. Right to assign interest in the land leased- The lessee can sub lease the land as an owner
of the leased land for the time period only if not prohibited in the lease agreement.
c. Right to remove fixtures- The lessee has the right to remove any fixture in the property
during the time period of the lease, however, after the termination of the lease deed the
lessee must leave the property in the condition in which he received it.
 d. Right to charge for repair- The lessee can charge the lessor for any repair done on the
land leased.

The liabilities of a lessee are:

a. Duty to disclose material facts- The lessee is bound to inform the lessor of any material
fact which the lessee is aware of and the lessor is not.
b. Duty of pay rent or amount as decided in the lease agreement.
c. Duty of maintaining the property- It is the duty of the property to maintain the property
leased.
d. The lessee can erect any permanent structure on the land leased.
e. Duty to restore possession to the lessor after the time of lease has finished.
f. Duty to use the land leased in a reasonable manner and for legal purposes.